Does the Bambu Successor Franchise Rider release Bambu from claims brought by the Franchisee's agents?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- e.
Executes a successor franchise rider in the form designated by Bambu which contains a general release of any and all claims against Bambu and its affiliates, and their respective officers, directors, employees and agents arising out of or relating to this Agreement.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, the Successor Franchise Rider does include a release of claims against Bambu and its affiliates. Specifically, the franchisee, along with its affiliates, which include agents, agrees to release Bambu from any and all claims. This release covers claims of every kind and nature, whether known or unknown, that the franchisee or its affiliates may have against Bambu.
This means that by signing the Successor Franchise Rider, a franchisee is giving up their right to sue Bambu for any reason, including actions or omissions by their own agents. This is a significant point for prospective franchisees to consider, as it limits their legal recourse against Bambu. The release extends to various aspects of the franchise relationship, including transactions, agreements, and the overall franchise relationship from the beginning of time until the date the rider is signed.
It is important to note that the FDD also includes specific clauses related to the release of unknown claims and waivers of state laws, such as California Civil Code Section 1542, which protects against releasing claims that are not known at the time of the release. Franchisees are also required to waive rights under specific sections of the North Dakota Century Code and the Montana Code Annotated, or similar provisions in other applicable laws. These waivers reinforce the comprehensive nature of the release.
Prospective Bambu franchisees should carefully review the Successor Franchise Rider and understand the full extent of the claims they are releasing. They may want to consult with an attorney to fully understand the implications of this release and how it may affect their rights and ability to take legal action against Bambu in the future.